Insider Brief
- Virgin Galactic has announced a new sales agreement to raise up to $300 million by offering shares of its common stock under an “at-the-market” program.
- The company plans to use the raised capital for fleet expansion and to cover general corporate expenses, including working capital and administrative needs.
- With ambitions to establish a sustainable pipeline for its spacecraft, Virgin Galactic is investing heavily in its next-generation fleet to support a regular cadence of space tourism flights.
Virgin Galactic has announced a new sales agreement to raise up to $300 million by offering shares of its common stock under an “at-the-market” (ATM) program. The company aims to accelerate the development and production of its next-generation spaceflight fleet, with funds supporting the construction of additional spacecraft, including a new mothership and two Delta Class spaceships. Virgin Galactic plans to use the raised capital for fleet expansion and to cover general corporate expenses, including working capital and administrative needs.
Through the ATM program, Virgin Galactic can sell shares periodically through its sales agent, Jefferies LLC, at market prices or negotiated rates, providing the company with a flexible approach to meet funding needs in a dynamic market. This method allows the company to sell shares directly on exchanges or through alternative trading systems, among other options, adapting to market demand and conditions.
The funds from this program align with Virgin Galactic’s growth strategy, as the company seeks to scale its operations and increase the frequency of its commercial spaceflights. With ambitions to establish a sustainable pipeline for its spacecraft, Virgin Galactic is investing heavily in its next-generation fleet to support a regular cadence of space tourism flights.
Virgin Galactic’s ATM program operates under its shelf registration statement filed with the Securities and Exchange Commission (SEC), with documents available to prospective investors through Jefferies LLC or the SEC’s EDGAR system.
Image credit: Virgin Galactic
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